Causing further delay in the implementation of the Rs 51,000 crore 12 million tonne integrated greenfield steel project of Posco India near Paradeep, the expert committee constituted to examine various mitigating measures to be taken up by the company to enable it use forest land for the project is yet to submit the report to the Orissa government.
Following the Supreme Court order allowing forest diversion for the project, the steel and mines department of Orissa government notified the formation of this committee under the chairmanship of S K Patnaik, member Central Empowered Committee (CEC), Government of India, to examine the mitigation measures to minimize the impact of forest loss due to the project.
The committee, which has principal chief conservator of forests (wild life), B K Singh, senior assistant inspector general of forest, ministry of environment and forests (GoI) and director, SC and ST development department of Orissa government as members, was mandated to furnish its views to the state government within 2 months from the date of notification. Though the committee was constituted on 30 October 2008, it is yet to submit the report, sources said.
This committee was set up to suggest steps to be taken by Posco to protect the area, for which the forest diversion proposal (FDP) of Posco India was approved by the Central Empowered Committee (CEC). It was to suggest measures to protect the area from cyclone and other natural calamities which may be caused due to the cutting of large number of trees, especially from the coastal side.
Sources said, delay in the submission of report by the committee is likely to cause further delay in obtaining the stage-II forest clearance by Posco.
It may be noted, the Supreme Court has given the stage-I clearance for the forest diversion proposal of the company stating that the second stage clearance will depend on the fulfillment of the mitigation measures.
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The project, billed as the largest foreign direct investment (FDI) of the country requires 4004.24 acres land. Out of it, forest land is about 2,958.79 acres, for which the stage-I clearance has been given to the company.
Meanwhile, the state forest department has started the assessment of the cost of wild life management, net present value (NPV) and afforestation among others to be taken up by the company. Once the assessment is over, the company will be asked to deposit the required amount with the Union ministry of environment and forests (MoEF), GoI., sources added.
Posco signed a memorandum of understanding (MoU) with Orissa government for setting up a 12 million tonne greenfield project near Paradip in the Jagatsinghpur district on June 22, 2005.The project could not make any headway due to the resistance of the local people who are opposed to land acquisition by the company.
Though the state government has recommended the Centre for grant of Prospecting License (PL) of Khandadhar mines to Posco, the Orissa High Court has stayed the grant of PL by Centre till 22 April. The central PSU Kudremukh Iron Ore Company Limited (KIOCL) has moved the Orissa High Court against the state government’s recommendation favouring Posco, without taking a final decision on other applications.